The IRS is sending letters to virtual currency owners with the intention of educating them about their tax and filing obligations. The letters indicate that the taxpayer may owe taxes because of improper reporting of virtual currency transactions,
If you receive one of these letters, please contact our office and speak to one of our tax professionals.
Here is a link to the IRS announcement
IR-2019-129, July 17, 2019
WASHINGTON — The Internal Revenue Service today added care for a range of chronic conditions to the list of preventive care benefits that may be provided by a high deductible health plan (HDHP). Notice 2019-45 (PDF), posted today on IRS.gov, lists the new types of medical care that may be treated as preventive care for this purpose.
Individuals covered by an HDHP generally may establish and deduct contributions to a Health Savings Account (HSA) as long as they have no disqualifying health coverage. To qualify as a high deductible health plan, an HDHP generally may not provide benefits for any year until the minimum deductible for that year is satisfied. However, an HDHP is not required to have a deductible for preventive care (as defined for purposes of the HDHP/HSA rules).
The Treasury Department and the IRS, in consultation with the Department of Health and Human Services, have determined that certain medical care services received and items purchased, including prescription drugs, for certain chronic conditions should be classified as preventive care for someone with that chronic condition.
These medical services and items are limited to the specific medical care services or items listed for the associated chronic conditions specified in Notice 2019-45. Any medical care previously recognized as preventive care for these rules is still treated as preventive care.
Notice 2019-45 provides that the following services and items for individuals with the specified chronic conditions listed are treated as preventive care.
|Preventive Care for Specialized Conditions
||For Individuals Diagnosed with:
|Angiotensin Converting Enzyme (ACE) inhibitors
||Congestive heart failure, diabetes, and/or coronary artery disease
||Osteoporosis and/or osteopenia
||Congestive heart failure and/or coronary artery disease
|Blood pressure monitor
|Insulin and other glucose lowering agents
|Peak flow meter
|Hemoglobin A1c testing
|International Normalized Ratio (INR) testing
||Liver disease and/or bleeding disorders
|Low-density Lipoprotein (LDL) testing
|Selective Serotonin Reuptake Inhibitors (SSRIs)
||Heart disease and/or diabetes
The 2020 annual limit on HSA contributions will be $3,550 for self-only and $7,100 for family coverage. The self-only contribution limit will rise by $50, while the family contribution will rise by $100. That’s about a 1.5 percent increase from 2019 contribution limits.
For calendar year 2020, a “high deductible health plan” is defined under § 223(c)(2)(A) as a health plan with an annual deductible that is not less than $1,400 for self-only coverage or $2,800 for family coverage, and the annual out-of-pocket expenses (deductibles, co-payments, and other amounts, but not premiums) do not exceed $6,900 for self-only coverage or $13,800 for family coverage.
Both increases are inflation adjusted amounts for calendar year 2020.
Michigan taxpayers with past-due tax debts should be aware of a new scam making the rounds through the U.S. Postal Service, according to the Michigan Department of Treasury.
In the scheme, taxpayers are sent what appears to be a government-looking letter about an overdue tax bill, asking the taxpayer to immediately contact a toll-free number to resolve a tax debt or face asset seizure. The piece of correspondence appears credible to the taxpayer because it uses specific personal facts about the outstanding tax debt pulled directly from publicly available information.
The scammer’s letter attempts to lure the taxpayer into a situation where they could make a payment to a criminal.
ALL taxpayers should be aware of this scam.
Contact our office if you receive any tax correspondence.
Please remember: the state Treasury Department’s correspondence involves official letters sent through the U.S. Postal Service, including several options to resolve your debt and information outlining your taxpayer rights.
IRS has announced the 2019 cost-of-living adjustments (COLAs) with respect to retirement plan limits.
The following plan limits are increased effective Jan. 1, 2019:
Elective deferrals: The maximum deferral amount for 401(k) and 403(b) plans increases from $18,500 to $19,000 for 2019. Catch-up contributions for individuals aged 50 or over remains $6,000.
SIMPLE accounts: The maximum deferral amount for a SIMPLE plan increases from $12,500 to $13,000 for 2019. Catch-up contributions for individuals aged 50 or over remains $3,000.
Government, etc. deferred compensation plans: The limit on deferrals for deferred compensation plans of state and local governments and tax-exempt organizations, increases from $18,500 to $19,000 for 2019. Catch-up contributions for individuals aged 50 or over remains $6,000.
IRA and Roth IRA income limits: The maximum contribution for IRA and Roth IRA accounts increases from $5,500 to $6,000 for 2019. Catch-up contributions for individuals aged 50 or over remains at $1,000.
Contact our office for more information, or see the full IRS notice: Notice 2018-83, 2018-47 IRB; 11/1/2018.
Most businesses have unclaimed property resulting from normal operations. Any asset, tangible or intangible, belonging to a third party that remains unclaimed for a specified period of time is considered unclaimed property. For example, uncashed payroll checks must be turned over to the State after one year; most other property types, such as vendor checks and accounts receivables credit balances, must be turned over after three years. Government entities must turn over all unclaimed property, regardless of property type, after one year.
Michigan’s Uniform Unclaimed Property Act, Public Act 29 of 1995, as amended, requires businesses and government entities to report and remit to the Michigan Department of Treasury abandoned and unclaimed property belonging to owners whose last known address is in Michigan. In addition, every business or government entity that is incorporated in Michigan must report and remit abandoned property belonging to owners where there is no known address.
New for 2017: Entities without unclaimed property to report under the Michigan Uniform Unclaimed Property Act (Public Act 29 of 1995, as amended) are strongly encouraged to file a zero or negative report. Beginning in 2018, all entities registered to do business in the State of Michigan with nothing to report will be required to submit negative reports. All entities have the ability to both report and remit payments electronically.